Answer the following questions using the information below:
Heck's Kitchens is approached by Mr. Louis Cifer, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers:
Heck's Kitchens has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $50 per unit.
-An example of a quantitative factor for the decision-making process is:
A)customer satisfaction
B)employee morale
C)product quality
D)manufacturing overhead

Question

Answer the following questions using the information below:
Heck's Kitchens is approached by Mr. Louis Cifer, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers:
  Heck's Kitchens has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $50 per unit.
-An example of a quantitative factor for the decision-making process is:
A)customer satisfaction 
B)employee morale 
C)product quality 
D)manufacturing overhead

Quizplus · Accepted Answer

The increase in direct material costs due to the change from oak to cherry wood is a quantitative factor that can be analyzed in terms of the impact on manufacturing overhead and the ability to generate a profit. Therefore, the best choice is manufacturing overhead. The other options are more qualitative factors that may also be considered in the decision-making process, but they do not provide specific numerical data that can be used to make a decision.

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